HB 1904 Summary

• Authorizes business enterprises and individual taxpayers to claim income tax, insurance premium tax, and ad valorem tax credits for voluntary cash contributions to student scholarship organizations, with credits limited to 50% of total tax liability.

• Defines "student scholarship organization" as a 501(c)(3) charitable organization that obligates at least 90% of annual donation revenue for scholarships or tuition grants to eligible students at any qualified school of their choice.

• Establishes eligibility requirements for students including Mississippi residency and prior enrollment in public school for at least six weeks, with waivers available for students assigned to low-performing schools, those experiencing documented school violence, or homeschooled students.

• Sets aggregate annual credit caps of $40,000,000 for business taxpayers and $10,000,000 for individual taxpayers, with unused credits allowed to carry forward for five consecutive years.

• Requires student scholarship organizations to certify they do not fund abortions, cannot restrict scholarships to particular individuals, and must file annual reports with the Department of Revenue; becomes effective January 1, 2025.